Australian Bitcoin ETF Set To Debut Next Week

The wheels are in motion for an Australian Bitcoin ETF to hit the market as soon as next week.  If everything goes as planned, the country’s first-ever Bitcoin ETF will be available for trading during the final week of April.  This is an important progression for cryptocurrency as a whole as well as those interested in cryptocurrency investing.  The availability of a Bitcoin ETF has the potential to buoy Bitcoin and other cryptocurrencies even if the market becomes bearish in the months ahead in anticipation of a potential recession.

Details Of The Australian Bitcoin ETF

Australia’s first Bitcoin ETF is unique in that it is an exchange-traded fund listed on the Cboe platform for equities trading.  The debut of the ETF is a gauge of the overarching demand for Bitcoin and other cryptocurrencies.  If the ETF increases in value after its debut, it is a clear sign that there is some pent up demand for Bitcoin as well as other cryptocurrencies.

The green light was given to the Australian Bitcoin ETF after several market players agreed to margin limitations.  Now that those agreements are in place, the clearing house in charge of controlling investor access to the Australian equities capital markets will allow for the listing of the ETF.  The news of the Australian Bitcoin ETF was first broken by AFR, an Australian news outlet.

Clearing House Details

The clearing house behind the debut of the Australian Bitcoin ETF is ASX Clear.  This well-established clearing house is central to the country’s equity capital markets.  All in all, the clearing house has four distinct participants that will pony up the funding for mandated margin requirements necessary to account for settlement risks tied to Bitcoin investing.

Market analysts believe three clearing participants that are institutional-grade are involved in the new Bitcoin ETF.  Furthermore, it has also been reported that one sizable retail clearing group will be involved.  This retail clearing player is allegedly willing to pay a 42% margin as mandated by ASX Clear prior to allowing the trading of the Bitcoin ETF to begin.

Hamish Treleaven, the Chief Risk Officer of ASX, stated that the clearing house has achieved its aim of establishing clearing participants, meaning the stage is set for the Bitcoin ETF to debut as soon as next week.  If everything goes as planned, the Bitcoin ETF will commence trading on April 27.  Treleaven will transmit notice to relevant parties on Wednesday, the 20th, notifying them that the clearing house has obtained the necessary regulatory permissions.

The Start Of A Trend?

All in all, investors, market makers, clearers, brokers and those involved in clearing will have an entire week’s worth of time to lay the groundwork necessary for the new ETF.  Though the lone Australian Bitcoin ETF of Cosmos Asset Management’s Bitcoin ETF will capture the entirety of the country’s market share in its space, there is the potential for additional Bitcoin ETFs to emerge as competition.  

A portion of the anticipated billion dollars that move into the Cosmos Asset Management Bitcoin ETF will likely find their way to competing crypto ETFs in due time.  The rise of the Australian Bitcoin ETF is notable as it has been more than two years since the ASIC, short for Australian Securities and Investments Commission, stated that listing retail Bitcoin in the country would not be permitted.

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